Noting that the question of what is - now - driving China’s seemingly relentless economic growth is one of significance to international policy makers and business executives alike, a leading business journal has conducted new research. Arguing that conventional wisdom of export-led growth is wrong, the McKinsey Quarterly report says :
“We found that exports have been a major driver, but not one as dominant as commonly believed. Indeed, there are clear signs that a shift toward domestically driven economic growth is well under way.”
The picture of the Chinese economy that emerges from this new research has implications for the growth and supply chain strategies of businesses in China and elsewhere, the journal adds.